Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Egypt gears up to meet energy needs: Minister  Join our daily free Newsletter

MENAFN - The Peninsula - 13/02/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - The Peninsula) Egypt will need to import an additional 1bn worth of petroleum products and secure significant natural gas supplies as it scrambles to meet energy needs for the summer, Oil Minister Sherif Ismail has told Reuters



One government after another has struggled to cope with energy crunches, and Ismail said this coming season would be no exception. Failure to find a solution could frustrate Egyptians, who rioted in the past over long lines at gas pumps just before the army toppled Islamist president Mohamed Mursi



Political turmoil since a popular uprising ousted autocrat Hosni Mubarak in 2011 has paralysed decision making. Disarray in the energy sector will take time to fix, even after a new government replaces the army-backed interim administration. "Of course there are needs," said Ismail, adding that efforts to import badly needed natural gas may not succeed.



"The intention is to (make available) liquefied natural gas (LNG) and (to get) LNG facilities in operation before the summer ...It is our prime concern and intention to solve this problem if not for this year by 100 percent then at least for the years yet to come."



Egypt in October tendered for a floating terminal needed to import LNG. An official said at the time that the government wanted the terminal in place by April, before temperatures rise and consumption spikes.



The tender has not yet been awarded, and experts say that time has run out for a terminal to be delivered and installed before the summer. Ismail said the alternatives to importing LNG include shifting to using more expensive fuel oil and encouraging Egyptians to conserve energy during peak hours.



These steps may not suffice. Analysts say about 75 percent of electricity production in Egypt is dependent on gas, not fuel oil



Saudi Arabia, Kuwait and the UAE extended an economic lifeline to Eypt after the army ousted Mursi after mass protests against his rule.




Egypt has said it has received 4bn in fuel products from Gulf nations since Mursi's ouster. Ismail said Egypt would require more imports for the summer. "The first estimate...is that we will need to import petroleum products of around 250m per month during the four summer months," Ismail said in an interview



The growing population of 85 million has kept energy demand steadily rising so that it now outstrips the production of oil and gas from fields in the Western Desert, Nile Delta and offshore



Compounding the problems, the government fell into heavy debt to foreign energy firms which Egypt needs to help it exploit gas reserves that could enable the country to end power cuts and bolster export income



Instead, surging demand has caused Egypt to divert high levels of gas produced by foreign companies such as BG Group and promised to them for export.



Ismail said that "the gap between production and consumption" is caused mainly by the fact that Egypt has not developed its available reserves



SUBSIDY BURDE



Egypt's energy troubles weigh heavily on the economy. Talk of cutting fuel subsidies costing 15 billion a year has produced limited results. Successive governments have feared that raising energy prices could trigger unrest in a country where street protests have helped remove two presidents in three years.



Ismail, an engineer who held senior posts at several state-run energy firms before his appointment as minister last July, says the interim government will take the first steps in a reform programme that would see subsidies cut by 25 to 30 percent in five to six years.



A smart card system for fuel purchases by drivers launched during Mursi's year in office should be operational within three months, he said.




 


The Peninsula




  MENA News Headlines
 Mar 28 2017 - Kan Yama Kan Inaugurates a 2000-book School Library in IndiaMENAFN Press
(MENAFN Editorial)The Kan Yama Kan (Once Upon a Time) initiative, a subsidiary of the UAE Board on Books for Young People (UAEBBY), has recently inaugurated a 2,000-book library at the Naushera Mewat ...

 Mar 28 2017 - KIB’s showjumping team earns new accoladeMENAFN Press
(MENAFN Editorial)The Kuwait International Bank (KIB) showjumping team recently earned a new impressive accolade, adding to its growing roster of achievements, with jockey Ahmad Al-Mudaheka nabbing ...

 Mar 28 2017 - Munich’s Bayerischer Hof Hotel to spend $11 million to increase share of projected 3.6 million GCC visitors to Germany by 2030MENAFN Press
(MENAFN Editorial)The historic Bayerischer Hof Hotel in Munich is to spend over EURO12 million ($11 million) on a renovation project aimed at attracting more GCC visitors. The multi award-winning ...

 Mar 28 2017 - Bank Muscat - Ratings Lowered in line with Recent Oman Sovereign Rating Action Outlook Revised to StableMENAFN Press
(MENAFN Editorial) 28th March 2017 Bank Muscat’s Ratings Lowered in line with Recent Oman Sovereign Rating Action; Outlook Revised to ‘Stable’ Capital Intelligence Ratings (CI Ratings or CI), ...

 Mar 28 2017 - H.E. Alfadhel Mohamed Al Harthy, Secretary General to the Cabinet inaugurates the 1st Edition of Smart City Summit OmanMENAFN Press
(MENAFN Editorial)The 1st Edition of the Smart City Summit Oman was inaugurated by H.E. Alfadhel Mohamed Al Harthy, Secretary General to the Cabinet at the Oman Convention & Exhibition Centre on 28th ...

 Mar 28 2017 - Sharjah Officially Launches its Childhood Protection NetworkMENAFN Press
(MENAFN Editorial)As part of its overall development strategy, and its efforts to provide a safe life, excellent childcare and to protect children’s rights, the Emirate of Sharjah launched the ...

 Mar 28 2017 - Al Mazaya Holding endorses 8 percent of share nominal value in cash for Shareholders in 2016MENAFN Press
(MENAFN Editorial)Al Mazaya Holding’s Ordinary General Assembly convened on Tuesday, March 28 2017, at Al Mazaya Tower, strategically located in Al Mirqab Area in Kuwait City, one of the company’s ...

 Mar 28 2017 - Sharjah to Showcase its Leading Integrated Business Environment at AIM 2017MENAFN Press
(MENAFN Editorial)Sharjah FDI Office (Invest in Sharjah) - the promotional arm of Sharjah Investment and Development Authority (Shurooq) - has announced that it will participate at the seventh ...

 Mar 28 2017 - In the presence of HH Sheikh Ahmed bin Saeed Al Maktoum, H.E. Essa Kazim, Governor of DIFC, welcomes President of the Republic of Kazakhstan and distinguished delegationMENAFN Press
(MENAFN Editorial)His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), earlier this week welcomed His Excellency Nursultan Nazarbayev, the President of the Republic of ...

 Mar 28 2017 - City Centre Rotana Doha celebrates Vietnamese Food Week with Iron Chef Michael BaoMENAFN Press
(MENAFN Editorial)Teatro, City Centre Rotana’s specialty signature restaurant, in partnership with Emirates Airline will host a Vietnamese Food Week featuring award winning Iron Chef Michael Bao ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help